Tracey Simbi
While the image of South Africa’s farmers as white, conservative, khaki-clad, beer-swilling men persists, the reality is quite different – most are responding dynamically to changes in the industry and new black entrants are slowly making their presence felt. In fact, a silent revolution is taking place in agriculture.
While some changes were implemented in the sector in the dying days of National Party rule, the real turnaround has taken place under Minister of Land Affairs Derek Hanekom. In less than 18 months he has piloted the dramatic transformation of agriculture.
At the end of last year, a new Marketing Act was put in place, providing for the phasing out of control boards over this year. The sector is beginning to reap some of the rewards:
* In 1987/88 the horticulture sector accounted for 18% of the value of agricultural production – this share has now risen by over 30%, showing the shift within the agricultural sector to high-value, labour-intensive crops and citrus production has grown by more than 50%;
* Agricultural exports are the fastest growing non-gold export -having grown from 8% of total exports before 1994, to almost 10% in 1996;
* While the growth in export markets refers specifically to fruit and vegetables (export of deciduous fruit grew by 350%), the volume of poultry exports rose by more than 300% and egg and milk exports by 1000%;
* Similarly the value of wine exports has increased by several hundred percent.
Dynamic processes in the sector are further illustrated by the level of investment. In 1996, farmers invested nearly 30% more on fertiliser than in 1995 and over 50% more than in 1994. Investments in tractors and transport equipment is up 40% from 1995 and 55% on machinery and implements.
Individual farmers are not the only ones to benefit from the new open market. The extensive deregulation of controlled markets and the elimination of price controls will have a long-term impact on South Africa’s competitiveness and efficiency. And agricultural producers, processors, consumers and the economy as a whole will all benefit from more jobs, more choice and lower prices.
A central theme of agricultural policy is the elimination of distortions, creating a highly efficient and economically viable, market- directed farming sector characterised by a wide range of farm sizes. To achieve this it is clear that government will need to place more emphasis on support to those who need it – resource-poor emergent farmers. And it will. Judicious use of government support programmes targeted at the small and emerging farming sector, together with opportunities created by the open and diversified markets, will ease the way for new entrants.
Furthermore, changes to the services of the Land Bank will result in a broadening of the client base to include both small and large commercial farmers, with credit to emerging black farmers becoming more readily available. Emphasis is placed on the creation of an institutional framework and mechanisms to give resource-poor farmers access to production loans, to help boost productivity and stimulate the rural economy.
Added to this is the potential of land reform projects to boost aspirant farmers. The pace of redistribution is accelerating. This year, delivery more than doubled that of 1994-96. By mid-November, 272 projects had been approved, involving about 700 000ha, 60 000 households and over 300 000 people.
“It is a solid start at rectifying the injustices of the past in a fair and transparent way,” says Hanekom, “and most of the projects involve some form of productive use of the land.”
While Hanekom recognises that not all will be successful, “at the very least they will deal with land and housing needs” and contribute in some form to household food security.
Tracey Simbi is head of the policy process in the Ministry for Agriculture and Land Affairs